UPS Said to Reach Deal to Buy TNT Express to Grow in Europe

United Parcel Service Inc. (UPS) reached an agreement to buy TNT Express NV (TNTE) after raising its offer for Europe’s second-largest express delivery company, according to two people with knowledge of the talks.

At the range of 9.50 to 10 euros a share, the deal would value TNT at 13 to 14 times its last four quarters’ earnings before interest, taxes, depreciation and amortization, compared with a median of 10 times trailing Ebitda in nine other similar deals, according to data compiled by Bloomberg.

“That price is a bit ahead of what the shares are trading at currently, so they seem to be getting a bit of a premium,” said Dieter Furniere, a Brussels-based KBC Securities analyst who has a hold rating on TNT. Sterling recommends buying UPS.